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OIES Podcast – Hedging and Tail Risk in Electricity Markets

 
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In this latest OIES podcast from the Electricity Programme, Dimitra Apostolopoulou talks to OIES Visiting Research Fellow Farhad Billimoria about his latest paper co-authored with Rahmat Poudineh and Jacob Mays titled “Hedging and Tail Risk in Electricity Markets”. A concern persistent in current electricity market designs has been the sufficiency of hedge markets and the capability to secure long-term contracts to underpin investment in capital-intensive generation plants. In this podcast we discuss the factors leading to these missing markets; such as retailer creditworthiness, market structure and the lack of demand side interest from consumers. We stress the key insight of the paper that contractability will be improved in future low carbon systems compared to today’s thermal dominated power systems. This is due to the fact that thermal portfolios are dominated by volatile fat-tailed commodities with significant tail dependence compared to higher tail-diversity of a renewable portfolio. Last, we discuss the some policy implication of this conclusion.

The post OIES Podcast – Hedging and Tail Risk in Electricity Markets appeared first on Oxford Institute for Energy Studies.

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167 episodes

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Contenu fourni par Oxford Institute for Energy Studies. Tout le contenu du podcast, y compris les épisodes, les graphiques et les descriptions de podcast, est téléchargé et fourni directement par Oxford Institute for Energy Studies ou son partenaire de plateforme de podcast. Si vous pensez que quelqu'un utilise votre œuvre protégée sans votre autorisation, vous pouvez suivre le processus décrit ici https://fr.player.fm/legal.

In this latest OIES podcast from the Electricity Programme, Dimitra Apostolopoulou talks to OIES Visiting Research Fellow Farhad Billimoria about his latest paper co-authored with Rahmat Poudineh and Jacob Mays titled “Hedging and Tail Risk in Electricity Markets”. A concern persistent in current electricity market designs has been the sufficiency of hedge markets and the capability to secure long-term contracts to underpin investment in capital-intensive generation plants. In this podcast we discuss the factors leading to these missing markets; such as retailer creditworthiness, market structure and the lack of demand side interest from consumers. We stress the key insight of the paper that contractability will be improved in future low carbon systems compared to today’s thermal dominated power systems. This is due to the fact that thermal portfolios are dominated by volatile fat-tailed commodities with significant tail dependence compared to higher tail-diversity of a renewable portfolio. Last, we discuss the some policy implication of this conclusion.

The post OIES Podcast – Hedging and Tail Risk in Electricity Markets appeared first on Oxford Institute for Energy Studies.

  continue reading

167 episodes

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